Dublin ready to discuss bailout exit

26 Oct 2012, 3:42 pm   -   Source: AAP
Ireland's finance minister says his country is ready to discuss exiting its EU-IMF bailout program. (AAP)

Ireland's finance minister says his country is ready to discuss exiting its EU-IMF bailout program. (AAP)

Irish Finance Minister Michael Noonan says his country is now ready to discuss exiting its EU-IMF bailout program.

Ireland is ready to explore an exit from its EU-IMF bailout program, the country's finance minister says.

Michael Noonan spoke at a Dublin news conference on Thursday to mark the eighth review of its bailout program by the European Union, the International Monetary Fund and the European Central Bank, the so-called 'troika' of creditors.

Noonan said Ireland has fulfilled its obligations and is ready to discuss exiting the 85 billion euro ($A107 billion) rescue program it entered in November 2010 after the collapse of its economy.

"We are thinking now about the process for exiting the program. The program ends at the end of 2013 so we had a preliminary discussion on the process for exiting the program," he said.

The troika would produce a paper before Christmas in which they will outline exit strategies, the minister added.

Noonan said this would focus on how Dublin would return fully to the sovereign bond market and become independent in fiscal and borrowing decisions.

In its review, the troika said it expected Ireland to meet its fiscal targets for 2012, with revenues ahead of target in the first three quarters of this year.

"Policy implementation remains steadfast despite the challenging external environment, helping Ireland to start to regain market access," the review said.

"It is expected that fiscal targets for 2012 will be met despite expenditure overruns in some areas, and the authorities are committed to the 2013 deficit ceiling of 7.5 per cent of GDP."

However, while Ireland's gradual economic recovery has continued, the IMF lowered its 2013 economic growth forecast to 1.1 per cent from 1.4 per cent previously, citing revised growth projections in Ireland's trading partners.

The GDP growth rate for this year remains unchanged, having been lowered to 0.5 per cent in July, largely due to weaker net exports.

Thursday's review will meanwhile make available a further 900 million euros ($A1.14 billion) from the IMF and 800 million euros from the European Commission.

EU member states are also expected to disburse another 500 million euros through bilateral loans.

Since the last review of the program in July, Dublin has returned to the financial markets, raising over five billion euros on short term bonds.

However, unemployment remains unacceptably high at nearly 15 per cent, making job creation and growth a key priority.

Ireland's once-buoyant "Celtic Tiger" economy was devastated by the 2008-2009 global financial crisis and a domestic property market meltdown.

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